1. The number of iot platforms is no longer growing

For the first time since 2015, the market for iot platforms did not grow. The study found that the number of platforms known as the Internet of Things doubled from 2015 to 2019, increasing from 260 to 620. However, since 2019, the number has dropped slightly to 613.

Iot platforms may have stopped growing, but the market has expanded dramatically. Spending on iot platforms was $5 billion in 2020, and the market is expected to grow to $28 billion by 2026. This constitutes a compound annual growth rate (CAGR) of 33% from 2020 to 2026, driven by the rapid adoption of cloud-based iot platforms and a growing number of customers choosing to purchase rather than manufacture iot platforms.

Most iot platforms provide application management/enablement capabilities (58% of 613 iot platforms). 43% of iot platforms provide data management and 35% provide device management. Fewer iot platforms offer IOT telecom management capabilities (7%) or infrastructure services /IaaS (3%).

2. In the past two years, 188 Internet of Things platform enterprises have closed down

Of the 620 iot platform companies identified by iot Analytics in 2019, the majority (426) are still present and active in 2021. However, 188 of them are no longer considered iot platform companies:

  • Twenty-six percent no longer exist and no longer provide services. Examples include DevicHub.net, IOTA Computing, and Yoics.

  • 24% of companies are no longer focused on iot (but still provide platforms). One example is Accenture, which has renamed its Insight platform AIP+ and now offers a range of modular, pre-integrated AI services and features rather than focusing on the Internet of things.

  • Some companies have moved to selling iot applications or vertical solutions, or are now focusing on security. Examples include Tellu and Centerity. Tellu used to provide the Internet of Things platform (TellluCloud) for all verticals, but has moved to e-health solutions.

In addition, 182 new iot platform companies have emerged since 2019. Studies show that 30 per cent of market participants stopped production and almost the same proportion joined the market, indicating that the market environment remains vibrant.

3. The business model of many platform enterprises has changed

In the past two years, 30 platform companies have switched to applications or offering vertical solutions instead of horizontal iot platforms, and 10 now offer security platforms.

Most current iot platform companies now offer vertical solutions as well as platform products.

Rather than choose to compete with 620 other companies and invest millions of dollars to maintain highly modular and scalable software platforms, these vendors follow the demand for specific (and sometimes niche) applications that allow them to build competitive advantage in vertically specific solutions.

4. The market is further concentrated in a small number of suppliers

The iot platform market continues to be concentrated, with the top 10 companies now controlling nearly two-thirds (65%) of the total market, compared to 58% and 44% in 2019 and 2016, respectively. Studies show that Google Cloud, Alibaba and others have become market leaders, and they continue to outperform the overall market at a growth rate of more than 50% per year.

Both AWS and Microsoft continue to add new features to their growing portfolio of IoT platform services. Earlier this year, AWS introduced AWS SiteWise Edge to a wider audience, which allows customers to keep their industry data locally to reduce latency or for security reasons.

5. The number of iot platforms in Asia Pacific and China is increasing

In June 2021, China announced the goal of “Made in China” to achieve 3-5 internationally influential industrial Internet of Things (IIoT) platforms by 2023. This plan is reflected in the study: the number of suppliers from the Asia-Pacific region, especially China, increased from 16% in 2019 to 22% in 2021.

Shenzhen and Beijing are currently among the top five cities for headquarters of iot platform companies. While the majority of iot platform companies are still headquartered in North America (44%), their share has declined by six percentage points over the past two years. Examples of 66 Chinese iot platform companies identified include Doodle, Ali Cloud, Baidu iot Core and Huawei Connection Management Platform.

conclusion

At present, the scale of China’s Internet of Things industry has reached 1 trillion yuan. The scale of China’s Internet of Things industry has grown faster than expected, with outstanding achievements in network construction and application promotion. Driven by the national strategy of becoming a cyber power and building new infrastructure, China has accelerated the development of IPv6, NB-iot and 5G networks. Large-scale application of the Consumer Internet of Things and the Industrial Internet of Things has begun, and breakthroughs have been made in 5G and the Internet of vehicles.

Driven by policy, economic, social and technological factors, the Internet of Things, as a key direction of China’s new generation of independent innovation breakthroughs in information technology, contains a huge space for innovation. Ai and the Internet of Things will be worth more than $26 billion by 2025. The data showed that AI increased the efficiency of iot data by 25 percent and increased the analytical power of the industry by 42 percent.

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